Wednesday, July 30, 2008

Analyze Additional August Covered Calls

Analyze the following covered calls that provide 7 to 10 % return for August expiration in 16 days.

The price may vary based on when one enters, but the return is still good.

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Buy 1,000 Shares of AMR at $9.15
Sell to Open Call 10 Contracts of -AMRHL, Strike price = 10 for $1.15

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Buy 500 Shares of MER at $25.9384
Sell to Open Call 5 Contracts of -MERHD, Strike price = 25 for $2.35

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Buy 500 Shares of FNM at $11.90
Sell to Open Call 5 Contracts of -NJWHK , Strike price = 11 at $2.2

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Buy 500 Shares of XLF at $21.2395
Sell to Open Call 5 Contracts of -XLFHU, Strike= 21 at $1.16
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Buy 500 Shares of FRE at $8.489
Sell to Open Call 5 Contracts of -FREHL, Strike=9 at $0.88

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